Benjamin Company Has the Following Information Available If Benjamin Company Wants a Targeted After-Tax Net Income of tax

question 117

Multiple Choice

Benjamin Company has the following information available:
$\begin{array}{ll}\text { Income tax rate } & 30 \% \\\text { Selling price per unit } & \$ 5.00 \\\text { Variable cost per unit } & \$ 3.00\\\text { Total fixed costs }&\$90,000.00\end{array}$
If Benjamin Company wants a targeted after-tax net income of $14,000,how many units must be sold?

• A) 45,000
• B) 52,000
• C) 55,000
• D) 60,000

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Definitions:

Capital Gains

The increase in value of an asset or investment over its purchase price, which becomes realized upon the sale of the asset.

Ex-dividend Date

The date on which stocks are traded without the right to receive the next dividend payment, determining who will receive the dividend.

Dividend Payment

A portion of a company's earnings distributed to shareholders, usually on a regular basis.

Stock Ownership

Stock ownership refers to the possession of shares in a corporation, which represents a claim on part of the company's assets and earnings.